The way trend forecasting adjustments - reversal in forex trading - Singapore Forex Trading, Singapore Forex Academy, Singapore Forex Association

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The way trend forecasting adjustments - reversal in forex trading

n the world of technical analysis, the trends play a role of primary importance, besides that we need to identify the reversal area (often referred to as the clearance Support / Resistence) with the goal of selecting the appropriate points , assuming you have selected is the standard trend but because no rational points should be able to point to further Stop Loss or time to market from the momentum adjusted returns tend to be quite slow. Therefore, the identification of areas critical to reversing into the right order. Actually there are three ways to determine a trend reversal prepare, we will turn to learn the methods above.


1. The pricing model (Chart Patterns)

Pricing model called Price Pattern, markets tend to repeat itself, in the past it was how they act in the future when in similar situations will also move like that, this is the basis to many observers and finding models to forecast price trends, Price pattern is very popular, a lot of globally trusted Trader should bring positive results. Example: With models Double Top / Bottom, bimodal pattern usually formed after a long rally and now the trend is no longer firmly on Trendline support, usually when Trendline has been broken will involve the former peak periods and models Test Double Top was born here.

2. The Japanese candlestick patterns (japanese candelstick)

The document you should read the Comprehensive candlestick patterns are used to analyze the technique of Steve Nilson, here is the handbook covers all common shapes and advanced candles to indicate an upcoming reversal place. Role of Models candles effective when combined with a pricing model, it is used to know the level of maximum clearance, this clearance rates effectively used Stoploss point, not too far Stoploss points.
When the candlestick pattern formed at the block level, the level of this block is considered to have "Verified"

This topic is just a combination bumper and price model to figure out the strong resistance level stoploss point used as effectively economically and most important is that once got hit Stop Loss largely bucked market user expectations and then SL will protect the safety of your account. I used a transaction without Stoploss, it is the most stressful time period, when markets reverse sound wave and the account will be very difficult to escape commands that dilemma. Therefore, do not forget Stoploss for each transaction in order to protect the safety of your account.

3. The Technical Indicator

Stochastic are many tools used to predict when prices are at overbought / sold, however the use Stochastic in the time frame should consider carefully, if you are trading in, you should stick Stochastic day in frame Daily wide, 4h, should not use Stochastic as 15M in short bracket to in order for the short-term timeframe is easy to cause signal interference.
See more topics analyzed Divergence on RSI divergence to better understand how to forecast the trend early by forecasting tool Leading Indicator.

Above are three basic ways to predict a trend reversal, recommends a combination of the two tools is Price Action models Japanese Candles price + model to capture new trends and validate a new trend began.
Good investors Forex trading success!